Supply Chain management business processes
The Sandbox Tycoon® prototype uses the model company Sir Juke for an implementation of a SAP ECC system with a focus on Supply Chain Management.
A company exists with the aim to achieve a profit and that makes sales to customers essential. Therefore the focus will be on Order to Cash business processes.
Business processes can be categorised as primary or secondary. The primary processes are initiated by a new sales order from a customer. The sedundary processes can only be initiated by primary processes and are also referred to as after sales.
The following primary sales processes can be identified:
- Delivery of products to a trade customer
By default sales process starts with the registration of a customer purchase order asa sales order. A delivery is created to accommodate warehousing activities within the distribution centre such as picking and packing. Deliveries are then grouped into shipments which represent a full container that is transported either by road, rail, sea or air. Invoicing can be triggered a) when the goods leave the distribution centre or b) when the customer has acknowledged the receipt of the goods. - Delivery of products in consignment to a trade customer
The invoice represents the transfer of ownership. Normally this occurs when the goods are delivered. However consignment sale will split the delivery of goods and change of ownership. Invoicing will only be triggered after the acknowledgement from the customer that the delivered goods are ‘consumed’. It could take several days or even weeks before delivered goods at the customer are consumed. Until consumption the customer will not be the owner of the goods.
These primary sales processes assume that the products are supplied to customers from the nearest Sir Juke distribution centre. There is always sufficient stock to ensure that the products are delivered on time and in full.
A single delivery can consist of multiple sales orders sharing the same delivery address. A single shipment can consist of multiple deliveries covering a specific area.
The forwarding agent will invoice Sir Juke on a monthly basis. Shipment costs are estimated per individual shipment.
Invoicing may be based on the acknowledgement of the receipt of the products by the customer.
The following variations on the primary process flows can be identified:
- Sale was based on an inquiry
Prospectssometimes want to receive a quote before deciding to place an order. Specific pricing arrangements can be stored in this inquiry so that they can be copied into the sales order. - Sale was based on a value or quantity contract
- Sale was based on a scheduling agreement
- Sale triggers procurement from a third party supplier prior to delivery to the customer
- Direct delivery to the customer from a third party supplier
- Export
The following material determination functionality can be implemented:
- Material replacement or substitution due to end of product life cycle
- Material listing or exclusion
The following specific pricing functionality can be implemented:
- Free goods
- Cash discounts
- Rebates
The following specific billing alternatives can be identified:
- Down payments
- Periodic billing
- Collective billing
